Check out Jim Cramer's latest trading recommendations on "Action Alerts Plus".
NEW YORK ( TheStreet) -- The story at Citigroup ( C) continues to improve, Jim Cramer told Debra Borchardt at TheStreet.com Monday, as he updated his outlook for the bank and the banking sector overall. Cramer said that while Citigroup announced its outlook remains challenged and the company will be laying off another 11,000 employees, those are both good things for Citi, which needs to under-promise and over-deliver. He said that Citi is not yet a growth story, but it's also not the horrible story that it was just a few years ago. There will be a lot to like about Citigroup once the worldwide economy improves, said Cramer, especially given that the bank's bad loans are becoming an increasingly smaller part of the other all loan portfolio. There's also the possibility of dividend increases, he noted, once the government allows it. Among Cramer's other banking faves, he said that Wells Fargo ( WFC) continues to benefit from rising home prices and Bank of America ( BAC) remains challenged by lawsuits but may also be improving under the hood. To sign up for Jim Cramer's free Booyah! newsletter, with all of his latest articles and videos, please click here. -- Written by Scott Rutt in Washington. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC